Capstone Holding Corp. — Director's Dealing 2008

Oct 15, 2008

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: ORTHOLOGIC CORP (CAPS)
CIK: 0000887151
Period of Report: 2008-10-10

Reporting Person: BVF PARTNERS L P/IL (10% Owner, Indirect Beneficial Owner)
Reporting Person: BIOTECHNOLOGY VALUE FUND L P (Direct Beneficial Owner)
Reporting Person: BIOTECHNOLOGY VALUE FUND II LP (Direct Beneficial Owner)
Reporting Person: BVF INVESTMENTS LLC (Direct Beneficial Owner)
Reporting Person: BVF INC/IL (10% Owner, Indirect Beneficial Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2008-10-10	Common Stock	P	56500	$.5758	Acquired	4006788	Indirect
2008-10-10	Common Stock	P	39000	$.5758	Acquired	4045788	Indirect
2008-10-10	Common Stock	P	142000	$.5758	Acquired	4187788	Indirect
2008-10-13	Common Stock	P	1600	$.6301	Acquired	4189388	Indirect
2008-10-13	Common Stock	P	1000	$.6301	Acquired	4190388	Indirect
2008-10-14	Common Stock	P	221400	$.63	Acquired	4411788	Indirect
2008-10-14	Common Stock	P	153000	$.63	Acquired	4564788	Indirect
2008-10-14	Common Stock	P	557000	$.63	Acquired	5121788	Indirect
2008-10-14	Common Stock	P	3100	$.7484	Acquired	5124888	Indirect
2008-10-14	Common Stock	P	3000	$.7484	Acquired	5127888	Indirect
2008-10-14	Common Stock	P	9000	$.7484	Acquired	5136888	Indirect

Footnotes

F1: The shares reported in this response are indirectly beneficially owned by BVF Partners L.P., a Delaware limited partnership ("Partners"), the designated filer of this joint filing on Form 4, and by its general partner, BVF Inc., a Delaware corporation ("BVF Inc."), which is also an investment advisor to Partners. Partners is the general partner of Biotechnology Value Fund, L.P., a Delaware limited partnership ("BVF, L.P.") and Biotechnology Value Fund II, L.P., a Delaware limited partnership ("BVF2, L.P."), both investment limited partnerships. Partners also is the manager of BVF Investments, L.L.C., a Delaware limited liability company ("Investments"). Pursuant to the operating agreement of Investments, Partners is authorized, among other things, to invest the funds of Ziff Asset Management, L.P., the majority member of Investments, in the shares of Common Stock reported in Table I as being beneficially owned by Investments.

F2: Mark N. Lampert is the sole shareholder and sole director of BVF Inc., and is an officer of BVF Inc. This joint filing on Form 4 shall not be deemed an admission that Mark N. Lampert is, for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or otherwise, the beneficial owner of any equity securities covered by this joint filing.

F3: Shares directly beneficially owned by BVF, L.P.

F4: Shares directly beneficially owned by BVF2, L.P.

F5: Shares directly beneficially owned by Investments.

F6: Total amount of shares indirectly beneficially owned by Partners and BVF Inc.